1. Dogecoin fell under a crucial support level.
2. Market sentiment around the memecoin remains bearish.

Dogecoin’s newest trouble

According to CoinMarketCap data, Dogecoin, the world's largest memecoin, has experienced an 11% decline in the past seven days and over a 4% drop in the last 24 hours alone. At the time of writing, DOGE was trading at $0.119 with a market capitalization exceeding $17.2 billion, testing a crucial support level.

AMBCrypto examined DOGE's metrics to determine if the memecoin could maintain this support. Analysis of IntoTheBlock's data revealed that 72% of DOGE investors were still in profit. However, investor confidence has waned, with the average balance of DOGE investors falling to $2.6k in recent days, indicating expectations of further price declines.

To forecast DOGE's performance, AMBCrypto analyzed its on-chain data. Santiment's data showed a sharp drop in Dogecoin's MVRV ratio over the past week, a bearish indicator. Additionally, Daily Active Addresses decreased after a spike on June 20, reflecting reduced usage of the memecoin. The Weighted Sentiment remained negative, suggesting dominant bearish sentiment in the market.

AMBCrypto also reviewed DOGE's daily chart to predict its future performance. The analysis showed a downtick in the Chaikin Money Flow (CMF), indicating a potential further price drop. However, the Relative Strength Index (RSI) was nearing the oversold zone, which might increase buying pressure and raise the memecoin's price. The MACD also indicated a possible bullish crossover.